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IBM Cuts Costs, Work Force by 10%
In Bid to Make PC Unit Profitable

ARMONK, N.Y. -- International Business Machines ' personal-computer division reduced its 10,000-person work force by more than 10% this year as part of a goal to cut costs by $1 billion annually.

The disclosure was made in a memo sent to employees last week by David Thomas, who since then has resigned as senior vice president and group executive, IBM Personal Systems Group. Mr. Thomas said many of the workers were transferred to other IBM operations.